Detailed Manufacturing Income Statement

A from the company s balance sheet at april 30 april 30 ending balance is the same as may 1 beginning balance.

Detailed manufacturing income statement. As you can see this example income statement is a single step statement because it only lists expenses in one main category. A model of decision making. Illustration 4 2 income statement boc hong company income statement for the year ended december 31 2011 sales revenue sales 3 053 081 less. Manufacturing financial statement relationships critical to understanding and using.

It is a simple template and can be used by small business owners to create their own income statement. Examples of service businesses are medical accounting or legal practices or a business that provides services such as plumbing cleaning consulting design etc. B from the company s balance sheet at may 31. Once you have completed these calculations the income statement for a manufacturing company is exactly the same at the income statement for a merchandising company.

Be careful not to confuse the terms total manufacturing cost and cost of goods manufactured with each other or with the cost of goods sold. Version of the more detailed income statement presented in illustration 4 2. Sales discounts 24 241. In merchandising company income statement there is no detailed cost of goods sold statement is prepared while in manufacturing company income statement detailed cost of goods sold statement is.

Figure 1 7 income statement schedules for custom furniture company. The income statement format above is a basic one what is known as a single step income statement meaning just one category of income and one category of expenses and prepared specifically for a service business. It is more rep resentative of the type found in practice. It reports how a company performed during the period presented and shows whether that company s operations have resulted in a profit or loss.

A detailed discussion of ratios is presented in chapter 17. An income statement is typically prepared at the end of a business period such as a fiscal year or quarter to assess profit or loss. Single step income statement. C this is actual manufacturing overhead for the period and includes indirect materials indirect labor factory rent factory utilities and other factory related.

Income statement for the 4th quarter year 1 sales 17 123 428. Here is an example of how to prepare an income statement from paul s adjusted trial balance in our earlier accounting cycle examples. The statement of cost of goods manufactured supports the cost of goods sold figure on the income statement. This detailed income statement template was created for a landscaping irrigation lighting company but can easily be adapted to a variety of businesses.